Goodwill and Intangible Assets

3 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

Goodwill represents the excess of net book value over the estimated fair value of net tangible and identifiable intangible assets of a reporting unit. Goodwill is tested for impairment annually or more often if impairment indicators are present at the reporting unit level. If events occur or circumstances change that would more likely than not reduce fair values of the reporting units below their carrying values, goodwill will be evaluated for impairment between annual tests. No triggering events indicating goodwill impairment occurred during the three months ended December 31, 2020. Please refer to Note 8, "Goodwill and Intangible Assets" to the Company's consolidated financial statements included in

the 2020 Annual Report on Form 10-K for further information on the goodwill impairment testing performed during fiscal year 2020.

The changes in the Company’s goodwill by reportable segment since September 30, 2020 are as follows (in thousands):

	Brooks
	Semiconductor		Brooks		Brooks
	Solutions		Life Sciences		Life Sciences
	Group		Products		Services		Other		Total
Gross goodwill, at September 30, 2020	$	637,303	$	103,278	$	349,899	$	26,014	$	1,116,494
Accumulated goodwill impairments		(588,944)		—				(26,014)		(614,958)
Goodwill, net of accumulated impairments, at September 30, 2020		48,359		103,278		349,899		—		501,536
Acquisitions and adjustments		354		2,059		9,040		—		11,453
Gross goodwill, at December 31, 2020		637,657		105,337		358,939		26,014		1,127,947
Accumulated goodwill impairments		(588,944)		—				(26,014)		(614,958)
Goodwill, net of accumulated impairments, at December 31, 2020	$	48,713	$	105,337	$	358,939	$	—	$	512,989

During the three months ended December 31, 2020, the Company recorded a goodwill increase of $11.5 million primarily related to the acquisition of THB and the impact of foreign currency translation adjustments.

The components of the Company’s identifiable intangible assets as of December 31, 2020 and September 30, 2020 are as follows (in thousands):

	December 31, 2020						September 30, 2020
			Accumulated		Net Book				Accumulated		Net Book
	Cost		Amortization		Value		Cost		Amortization		Value
Patents	$	5,302	$	4,914	$	388	$	5,302	$	4,865	$	437
Completed technology		93,644		52,847		40,797		92,477		49,875		42,602
Trademarks and trade names		26,253		10,222		16,031		25,769		9,322		16,447
Non-competition agreements		703		61		642		—		—		—
Customer relationships		281,852		119,847		162,005		271,113		112,277		158,836
Other intangibles		257		254		3		245		242		3
	$	408,011	$	188,145	$	219,866	$	394,906	$	176,581	$	218,325

Amortization expense for intangible assets was $9.7 million and $10.6 million, respectively, during the three months ended December 31, 2020 and 2019.

Estimated future amortization expense for the intangible assets for the remainder of fiscal year 2021, the subsequent four fiscal years and thereafter is as follows (in thousands):

Fiscal year ended September 30,
2021	$	29,020
2022		35,792
2023		32,503
2024		27,777
2025		22,252
Thereafter		72,522
	$	219,866